Wind tax credit has appeal for red states, too

Just in the nick of time, Congress took positive action to save jobs and to provide greater energy security at lower costs for consumers as a New Year’s Eve present to the American people.

Tucked inside the American Taxpayer Relief Act of 2012 was an extension of the wind production tax credit. The debate swirling around Washington concerning the wind production tax credit is interesting to say the least. Despite the fact that the vast bulk of jobs saved by this provision were in congressional districts held by House Republicans, opposition to the extension was led primarily by other House Republicans.

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Republicans who opposed extension of the wind PTC said they didn’t like the fact that wind energy gets federal support, as if wind power were the only energy source to receive help from the government. The fact is, virtually all forms of power generation receive some form of government assistance.

A recent Congressional Budget Office report points out how traditional energy sources enjoy an enormous advantage: “Tax preferences for energy were first established in 1916, and until 2005, they were primarily intended to stimulate domestic production of oil and natural gas. … [Today] only four major energy tax preferences are permanent: three are for fossil fuels and one is for nuclear energy.” That’s an 89-year head start, and their advantage is permanent, allowing for a stable business environment that wind energy is deprived of because of on-again, off-again federal policies.

We shouldn’t forget the essential role wind can play in helping our country meet its energy needs and the benefits this renewable resource is already providing.

Nearly every energy analyst supports the notion that diversification is critical to our nation’s energy security. While domestic wind is not the only solution to our energy security and independence, it is certainly a part of it. Over the past four years, wind has accounted for more than 35 percent of all new domestic generating capacity — second only to natural gas and more than coal and nuclear combined. In addition to being a domestic energy source, wind is clean, creating no harmful emissions, and unlike most other forms of power generation, it uses no water.

Because of the PTC, we have today an industry that supports 75,000 direct jobs (from manufacturing, to development, to operation) across the United States — this is a true American success story. The wind industry has attracted more than $15 billion in private investment annually over the past five years. The PTC also has led to a 12-fold increase in domestic wind manufacturing, with nearly 500 facilities now producing components for the industry. Businesses in every state now employ wind energy workers.